EMBRAER DEFENSE AND SECURITY SIGNS CONTRACT TO BUY ORBISAT

R$ 28.5 million-deal will increase the Company’s participation in the Brazilian Security System

Conteúdo
São José dos Campos, March 15, 2011 – Embraer Defense and Security signed a contract to purchase 64.7% of the capital of the radar division of OrbiSat da Amazônia S.A. The deal, which is valued at R$ 28.5 million, is an important strategic step to increase the participation of Embraer Defense and Security in the Brazilian Defense System.

“OrbiSat has technology that few countries in the world master,” said Luiz Carlos Aguiar, President of Embraer Defense and Security. “The synergy involved in this acquisition will bring important solutions for the development and manufacture of systems for monitoring and air defense, worldwide.”

Founded in 1998, OrbiSat created a radar division, in 2002, to develop state-of-the-art technology to be applied to air, sea and land remote sensoring and aerial surveillance. The business grew quickly and now accounts for 40% of the revenue of OrbiSat. The company is currently negotiating contracts with the Brazilian Air Force and Navy for developing and producing integrated monitoring systems, which are similar to those already being operated by the Brazilian Army.

This sale implies the splitting of OrbiSat into two companies: one focusing on radar, which will be controlled by Embraer Defense and Security, and the other involved with electronic equipment, which will continue to be under the control of the former owners.

There are approximately 150 employees in OrbiSat’s radar division, whose estimated income for 2011 is R$ 50 million. In conjunction with the Brazilian Army, the company developed the SABER M60 radar, which will be the basis of the Border Surveillance System (Sistema de Vigilância de Fronteiras – SisFron). OrbiSat is the company that does the most precise remote sensoring of the terrain under the tree cover in the world. This technology is now being use in the contract with the Brazilian Army for mapping the empty area of the Amazon region. The company has already performed similar services in several other countries.

The contract will be submitted to the Administrative Board for Economic Defense (Conselho Administrativo de Defesa Econômica – Cade – http://www.cade.gov.br) to be assessed, and is the first acquisition made by the recently created Embraer Defense and Security.